The parties addressed issues related to bilateral cooperation, focusing, among other things, on Russian gas exports to Germany. It was noted that Gazprom’s gas supplies to the German market had reached a record of 49.8 billion cubic meters in 2016. The upward trend in gas demand continues in early 2017. In January, gas exports grew by 23.2 per cent versus the corresponding month of 2016. Between February 1 and February 15, gas deliveries added 37 per cent compared to the same period of last year.

Alexey Miller and Brigitte Zypries discussed the routes for Russian gas supplies to Europe, paying particular attention to the Nord Stream 2 project. Transit-free gas deliveries across the Baltic Sea are highly sought-after by consumers. In January 2017, the operating Nord Stream gas pipeline was loaded to its maximum capacity above its design throughput.

The Nord Stream 2 gas pipeline will double the amount of Russian gas exported to the European market across the Baltic Sea, which is especially important in light of Europe’s growing demand for gas and declining indigenous production. Nord Stream 2 was noted to be a commercial project whose main advantages were reliability, feasibility, economic efficiency, and environmental friendliness.

Background

Germany is the largest consumer of Russian gas abroad.

The history of cooperation between Russia and German energy companies spans over 40 years. As of today, Gazprom’s main partners include BASF/Wintershall Holding, Siemens, Uniper, Verbundnetz Gas, and others.

Nord Stream is the export gas pipeline with the annual design capacity of 55 billion cubic meters of gas running across the Baltic Sea to Germany. The project operator is the Nord Stream AG joint venture (Gazprom – 51 per cent, Wintershall and Uniper – 15.5 per cent each, and Gasunie and ENGIE – 9 per cent each).

Nord Stream 2 is the construction project for a gas pipeline with the annual capacity of 55 billion cubic meters from Russia to Germany across the Baltic Sea.